Momentum Acceleration Signals from Price or On-Balance Volume

Summary

This indicator estimates momentum acceleration from either closing prices or On-Balance Volume. It calculates a smoothed rate of change over a configurable period, then compares that velocity with its own change. Positive and negative readings are plotted as directional arrows, with markers when the value crosses zero. The period setting trades responsiveness against smoothness, and users can choose to project price or volume acceleration onto the price chart.

The script also offers alerts for preliminary zero crossings and signals confirmed on the following bar, plus an optional framework for simulating long, short, or both directions. That framework can reverse on an opposite signal and optionally apply a stop loss, while displaying trade statistics over a selected history window. These are implementation features, not reported evidence of strategy quality: the document gives no measured returns or benchmark comparison. Results from the built-in simulation depend on its rules and selected settings and do not establish live trading performance.

Key ideas

• The indicator derives acceleration from smoothed price or On-Balance Volume changes.
• Positive and negative readings represent directional acceleration, with zero crossings marking signal changes.
• A shorter calculation period responds faster, while a longer one produces smoother readings.
• Alerts distinguish an initial crossing from a following-bar confirmation.
• The optional simulator supports long, short, reversal, and stop-loss settings but supplies no independent evidence of profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.